scholarly journals The Role of Microfinance in the Development of Small and Medium Enterprises (SMEs)

2021 ◽  
Vol 5 (2) ◽  
pp. 125-145
Author(s):  
Asad Khan ◽  
Daniyal Inayat ◽  
Dr. Samra Kiran
Keyword(s):  
Financial Risk ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Security Requirements ◽  
Primary Data ◽  
Firm Characteristics ◽  
Entrepreneurial Attitudes ◽  
Lack Of Information ◽  
Medium Enterprises ◽  
The Impact

This work has tried to investigate the impact of microfinance on the development of SMEs). The primary data was collected through questionnaires from SMEs in Peshawar. The results show that microfinance plays a vital role in the revenue and profit growth of SMEs and reveals that SMEs with higher financial risk and lower levels of productivity are more likely to seek microcredit. Furthermore, the results suggest that firm characteristics including product innovation efforts and managerial and entrepreneurial attitudes are the key determinants of the likelihood of receiving microfinance. The main problems identified were lengthy documentation process, lack of information about the microcredit other security requirements.

scholarly journals BANK CREDIT ACCESSIBILITY FOR SMALL AND MEDIUM ENTERPRISES IN HO CHI MINH CITY, VIETNAM

2021 ◽  
pp. 35-46
Author(s):  
Tran Huu Ai ◽  
Nguyen Thi Mong Thu
Keyword(s):  
Small And Medium Enterprises ◽  
Business Plan ◽  
Bank Credit ◽  
Ho Chi Minh City ◽  
Primary Data ◽  
Firm Characteristics ◽  
Factors Affecting ◽  
Related Data ◽  
Medium Enterprises ◽  
The Impact

This study examines the impact of firm characteristics on SMEs' access to bank crediting. The study used primary data taken from a survey questionnaire of 269 SMEs that collected credit-related data concerning SMEs. Regression analysis is applied to identify the factors affecting the accessibility of bank credits. SPSS 22.0 software was used for further analysis. The results show that the characteristics of business affecting the ability to access bank credit include: enterprise's location, equity, business plan, collateral, project value and firm tax number. The factors of business plan and project value are the two most influential ones.

The Impact of Financial Literacy on Financial Preparedness for Retirement in the Small and Medium Enterprises Sector in Uganda

2020 ◽  
Vol 9 (3) ◽  
pp. 26-41
Author(s):  
Colin Agabalinda ◽  
Alain Vilard Ndi Isoh
Keyword(s):  
Financial Literacy ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Moderating Effect ◽  
Primary Data ◽  
Retirement Preparedness ◽  
Medium Enterprises ◽  
The Impact ◽  
The Relationship ◽  
Effect Of Age

The study investigated the direct effects of financial literacy (knowledge, skills, and attitudes) on financial preparedness for retirement and the moderating effect of age among the small and medium enterprises in Uganda. Primary data was collected from a sample of n = 380 selected from the SME workforce. Descriptive analysis was run on SPSS, while validity and reliability of the measurement items yielded satisfactory composite reliability scores and average variance explained (AVE) scores for all items. Structural equation modelling (SEM) was used to test the hypotheses and multi-group analysis conducted to test for the moderating effect of age on the relationship between financial literacy and retirement preparedness. The results revealed that knowledge and skills were significant predictors of retirement preparedness. However, ‘attitude' was not a significant predictor, and age had no moderating effect on the relationship between the study variables. These findings present practical implications for policymakers and financial educators in a developing country context.

scholarly journals Analisis Dampak Tax Morale Terhadap Kepatuhan Pajak UMKM: Studi Kasus Kota Semarang

2018 ◽  
Vol 1 (1) ◽  
pp. 14
Author(s):  
Muslimah Mahmudah ◽  
Deden Dinar Iskandar
Keyword(s):  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Binary Logistic Regression ◽  
Primary Data ◽  
Binary Logistic Regression Analysis ◽  
Ethical Business ◽  
Tax Morale ◽  
Business Size ◽  
Medium Enterprises ◽  
The Impact

This study aims to analyze the impact of tax morale on Micro, Small, and Medium Enterprises (MSMEs) tax complianceSemarang City as the case study. This study uses primary data generated from 117 samples of MSMEs in Semarang. Data analysis is performed  using binary logistic regression analysis. The results showed that environmental, institutional, ethical, business, and business size variables significantly influence MSMEs tax compliance. On the other hand, variables whose effect on tax compliance is not statistically significant include happiness, religiosity, gender, age, education, and marital status.

scholarly journals Firm Performance: Does Mastering a Foreign Language Matter?

10.29007/dkzg ◽  
2018 ◽  
Author(s):  
Remedios Hernández Linares ◽  
María José Naranjo ◽  
Héctor Sánchez Santamaría ◽  
Mercedes Rico García ◽  
Laura Fielden Burns ◽  
...  
Keyword(s):  
Foreign Language ◽  
Organizational Performance ◽  
Small And Medium Enterprises ◽  
Language Education ◽  
Foreign Language Education ◽  
Primary Data ◽  
First Semester ◽  
Improved Performance ◽  
Medium Enterprises ◽  
The Impact

Over the last twenty years the impact of language in international and multinational companies has attracted significant scholarly attention, which is reflected in the growing literature. However, and despite the fact that small and medium enterprises (SMEs) constitute the engine of numerous economies worldwide, the impact of foreign languages on SMEs’ performance remains understudied. This is especially intricate because, considering that SMEs often have fewer resources, the commitment of such resources to language acquisition and foreign language education can only be justified in the case of improved performance. To address this gap, the objective of our research aims to get insights whether and how the domain of a foreign language (mainly English) affects SMEs’ performance. For this purpose, we perform an exploratory empirical study based on data collected through a telephone questionnaire during the first semester of 2017. A group of private Spanish SMEs constitutes our sample. Our work presents the results of the statistical analysis of these primary data, and contributes to a more nuanced perspective on language utility for organizational performance.

scholarly journals Impact of Financial Management Practices on SMEs Profitability with Moderating Role of Agency Cost

2017 ◽  
Vol 9 (1) ◽  
pp. 23-30 ◽  
Author(s):  
Saqib Muneer ◽  
Rao Abrar Ahmad ◽  
Azhar Ali
Keyword(s):  
Financial Management ◽  
Structural Equation ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Agency Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Medium Enterprises ◽  
The Impact

The importance of Small and medium enterprises (SMEs) towards economic development and growth is considerable. Some SMEs are facing difficulties to their development due to the lack of financial resources and management experience. The objective of this study is to check the relationships of financial management practices on profitability of small and medium enterprises and also to check the impact of agency cost on this relationship. This study consists of data analysis of two hundred SMEs from Faisalabad Pakistan. The study used primary data predominantly. SPSS 23 is used for descriptive analysis and Structural Equation Model (SEM) through Partial Least Square (PLS) 3 for hypothesis testing. The findings of this study indicate the presence of positive relationship between financial management practices and SMEs profitability but agency cost as a moderator has no effect on this relationship. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings for sustainability of their business in Pakistan.

scholarly journals Parametric Conditions of High Financial Risk in the SME Sector

Risks ◽  
2019 ◽  
Vol 7 (3) ◽  
pp. 84 ◽  
Author(s):  
Ślusarczyk ◽  
Grondys
Keyword(s):  
Low Income ◽  
Financial Risk ◽  
Small And Medium Enterprises ◽  
Small Enterprises ◽  
Continuous Variables ◽  
National Economic ◽  
Credit Financing ◽  
High Level ◽  
Medium Enterprises ◽  
The Impact

The sector of SME is the major force for the national economic and social development. Financial risk is one of the key threats to the activity of small and medium enterprises. The most common manifestation of the financial risk of SMEs is difficulty in financing the business and lack of funds for development. Banks are unwilling to grant loans to such companies. Moreover, it is the rising operating costs that cause shrinking profits, which may result in corporate debt, difficulty in debt repayment, and consequently, high financial risk of these entities. Numerous differences in conducting the activity of small and large enterprises intensify this risk and mean that the model of credit financing for companies is not adjusted to the capabilities and principles of the operation of small enterprises. Therefore, risk management is one of the most important internal processes in small and medium enterprises. The identification of factors that affect the level of financial risk in these entities is therefore crucial. The main objective of this research was to analyze the impact of selected parametric characteristics of the SME sector on the intensity of financial risk they take. This objective was accomplished on the basis of the survey with the participation of Polish SMEs. In order to test the adopted research assumptions, the linear regression model was used with four continuous variables for each type of the identified financial risk. Based on the final research results, the logit model was obtained for the risk of insufficient profits. It was indicated that both the internationalization of the company and the ability to manage risk are the only factors that affect a high level of risk of low income. The article ends with the discussion and the comparison with some previous research in this area.

Analisis �Financial Teknology (Fintech)� pada Permodalan Usaha Mikro Kecil dan Menengah (UMKM) dengan Model Peer-To-Peer (P2P) Lending

2019 ◽  
Vol 17 (2) ◽  
pp. 125
Author(s):  
Ria Manurung ◽  
A. Kristiadji Rahardjo
Keyword(s):  
Small And Medium Enterprises ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Peer To Peer ◽  
Least Square ◽  
Primary Data ◽  
Analysis Methods ◽  
P2p Lending ◽  
Medium Enterprises ◽  
The Impact

The purpose of this study is to analyze the impact of Fintech on Micro Small and Medium Enterprises (MSME) capital with the P2P Lending model. The formulation of the problem is What is the impact of Fintech on MSME capital with the P2P Lending model? Research locations in the Banyumas Regency area with a concentration of 110 MSME as a research sample, with the criterion that ever or currently lending with P2P Lending system. Primary data were obtained from the results of questionnaire processing and interviews with respondents, namely MSME, while secondary data was sought from OJK, BPS, the Ministry of Cooperatives and Micro, Small and Medium Enterprises, BI, articles, and textbooks relevant to research. Data analysis methods are descriptive analysis methods, paired difference analysis and ordinary least square (OLS). The conclusion obtained in this study is a tendency to increase in the Number of Workers, Turnover, Product Sales, Profits and Business Costs after the use of Fintech with the Peer to Peer (P2P) Lending model in MSME. So venture capital loans obtained through FinTech with the P2P Lending model have a positive effect on the improvement and development of the MSME business.

scholarly journals An analysis of Covid-19 implications for SMEs in Pakistan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rehan Aftab ◽  
Muhammad Naveed ◽  
Sajjad Hanif
Keyword(s):  
Small And Medium Enterprises ◽  
Quality Data ◽  
Primary Data ◽  
Data Set ◽  
Content Type ◽  
Labor Statistics ◽  
Proactive Planning ◽  
Medium Enterprises ◽  
Bureau Of Labor Statistics ◽  
The Impact

Purpose The purpose of this paper is to ascertain the impact of coronavirus (Covid-19) on small and medium enterprises in Pakistan, which are vulnerable to crisis situations. This study also aims to provide policy recommendations to the stakeholders by reviewing the situation of small and medium scale enterprises (SMEs) after the Covid-19 sudden surge. Design/methodology/approach The descriptive study is based on quantitative data technique and primary data collection is undertaken. The survey instrument is adapted from the US Bureau of Labor Statistics public documents. Collected responses from SME owners are descriptively analyzed using appropriate graphs. Findings The analysis infers that SMEs in Pakistan have encountered unfavorable implications of Covid-19 in the form of shortage of goods, blockage in transportation, decrease in demand of products and services, decline in profits and sales, limited operations, lockdown and employee’s layoff. Research limitations/implications The limited sample and precise use of instruments are few limitations along with valuable implications of this research. The analysis of Covid-19 impact on SMEs is an ongoing phenomenon and aids in proactive planning for the second wave of this outbreak. Financing schemes, youth entrepreneurship loans, retention of skilled staff and proactive planning for adverse future are few recommended measures for revival of the SMEs sector. Originality/value The use of a unique sample and quality data set collected using the Bureau of Labor Statistics instrument adds value to the findings of the study and their consistency. The existing body of knowledge in the context of the SMEs sector of Pakistan is strengthened with an analysis of crisis implications for this sector, which remained unaddressed in the past.

scholarly journals Innovations as the Competitive Advantage for Small and Medium Enterprises: the Case for the Kingdom of Saudi Arabia

2020 ◽  
pp. 196-205
Author(s):  
Ahlam Otaibi Alghanmi
Keyword(s):  
Saudi Arabia ◽  
Competitive Advantage ◽  
Organizational Innovation ◽  
Small And Medium Enterprises ◽  
Vital Role ◽  
Innovation Strategy ◽  
Kingdom Of Saudi Arabia ◽  
Innovation Strategies ◽  
Medium Enterprises ◽  
The Impact

There is a lack of studies on innovations and competitiveness in Small & Medium Enterprises (SMEs) in Saudi Arabia; to fell this gap, this paper will study change as the competitive advantage for Small and Medium Enterprises: the case for the Kingdom of Saudi Arabia. The study aims to explore different practices of SMEs in the Kingdom of Saudi Arabia to examine the impact of innovation strategies (Organizational, Product, Process, and Market) on the competitive advantage of SMEs. The study was conducted on one hundred and forty-seven (147) SMEs that are practicing different activities in the Kingdom of Saudi Arabia. The study's analysis indicates that most of the enterprises were young (operation years were less than ten years), which shows the strong need to apply innovative strategies to maintain their position and competitiveness in the market. Competitive advantage enables the firm to utilize its resources efficiently and maintain high levels of quality performance. The results show that the correlation between Innovation strategies such as product innovation strategy, market innovation strategy, process innovation strategy, and organizational innovation strategy practiced by SMEs in the Kingdom of Saudi Arabia and competitiveness was Positive. Therefore, it indicates that different innovation strategies were significantly influencing the competitiveness of the SMEs. To remain a competitor enterprise in the market is not a natural or an easy attempt, and it can be challenging for SMEs, especially without the needed knowledge and support. Findings and recommendations of the study can be used as a guideline for SMEs. Also, emphasizing on the importance of education that plays a vital role in SMEs innovations. It is essential to establish with different research centers and universities in the Kingdom of Saudi Arabia programs or activities that focus on changes in business, and it will result in gaining competitive advantage and sustainability for Small and Medium Enterprises in the market. Keywords: competitive advantage, innovation, small enterprises, medium enterprises.

scholarly journals The Impact of Outsourcing on the Performance of Small and Medium Enterprises in Vietnam

2021 ◽  
Vol 6 (3) ◽  
pp. 208-215
Author(s):  
Nguyen Manh Thang
Keyword(s):  
Factor Analysis ◽  
Financial Performance ◽  
Small And Medium Enterprises ◽  
Group Analysis ◽  
Primary Data ◽  
Multiple Group ◽  
Multiple Group Analysis ◽  
Expert Interview ◽  
Medium Enterprises ◽  
The Impact

This study examines the impact of using outsourced services on the performance of small and medium enterprises (SMEs) in Vietnam. The primary data used to analyze this study's main objectives were collected by the survey with the structured questionnaire and the expert interview with semi-structured interview guidelines. A total of 742 SMEs using outsourced services in the study area participated in the survey. The study employs Cronbach’s alpha test, exploratory factor analysis (EFA), confirmatory factor analysis (CFA), structural equation modelling (SEM), and multiple-group analysis for variables measurements and model testing. The study also investigates the influences of the degree of outsourcing on the enterprise’s performance. The results show that the degree of outsourcing has a low impact on financial performance, particularly ROS, ROE, and ROA (R2 = 0.013). Also, the degree of outsourcing has impacts on non-financial performance. The multiple-group analysis results indicate the different influences of the outsourcing degree on the different types of enterprises’ performance. The degree of outsourcing has a stronger impact on micro-enterprises' performance than the small and medium-sized enterprises. The commercial and service enterprises have higher performance when outsourcing than others. The outsourcing degree has a stronger impact on the performance of the enterprises that operated for more than nine years than others. The results show that there are different influences of the outsourcing degree on the performance of the enterprises that have different outsourcing situations. According to the findings, this study proposes the three main managerial implications to improve outsourcing effectively, such as strengthening outsourcing risk management, deciding on outsourcing depend on the enterprises’ characteristics, and managing the relationship between stakeholders.

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